The decline in the value of the euro in the Gulf region has been good news for European expatriates working in the region, Gulf News has reported.
The euro has declined nearly 12 per cent against the United Arab Emirates dirham over the last five months and has dropped 17 per cent in value against the dirham since July 2008.
"The obvious impact is that the cost of items imported from the eurozone will decline," HSBC economist Simon Williams told the paper.
"In the short to medium term it may not have a big impact on the retail prices as importers are unlikely to pass on these gains to end users," he commented.
The paper said that the euro’s decline has not impacted the trade between countries using the euro and UAE, but if the slide continues, importers are more likely to source items from the eurozone.
Expatriates may have heard that Greece’s debt problems have impacted on other countries in the eurozone, raising concerns that Portugal’s debt may be next to be downgraded.
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